SEC Commissioner Pierce: Meme coins are unlikely to be under the jurisdiction of regulators

Author: Mat Di Salvo, Decrypt; Translated by: Deng Tong, Golden Finance

The head of the newly formed cryptocurrency task force of the U.S. Securities and Exchange Commission said that Meme is unlikely to be under the jurisdiction of regulators.

In an interview with Bloomberg on Tuesday, SEC Commissioner Hester Peirce was asked about the official Meme coins of President Donald Trump and his wife, TRUMP and MELANIA, and whether such cryptocurrencies belong to the agency. Jurisdiction.

The new head of the SEC Cryptocurrency Working Group said such assets may not fall within the jurisdiction of the institution. President Donald Trump launched his own Solana-based Meme token TRUMP before his inauguration on January 20, and Melania Trump followed suit with his own token.

“There are a lot of people launching meme coins now,” Pierce said. “But under our current regulatory requirements, many meme coins may not find a foothold in the SEC.”

Meme coins are cryptocurrencies based on Internet jokes and subcultures, public figures, and more. Such assets are quickly minted and their value may soar instantly, but may collapse as quickly as it may. Some traders make amazing gains by buying and selling them, but others can lose a lot when they suddenly become worthless.

Trump soared to a high above $73 the day before the presidential inauguration, but his value has since fallen sharply. CoinGecko shows that its price is currently at $15.42, nearly 80% lower than that record.

Commissioner Pierce said last week that regulators are working to decide which cryptocurrencies should be considered securities and have taken a different approach than the way the previous administration regulates the field.

Under President Joe Biden, the SEC has taken a harsh attitude towards the cryptocurrency space, with former Biden-appointed chairman Gary Gensler often suing large cryptocurrency companies for allegedly selling unregistered securities.

Despite previous actions by the SEC, Commissioner Pierce has earned the nickname “cryptocurrency mom” for his friendly attitude toward the field. She is expected to be less hostile to companies in the industry, especially as President Donald Trump promises to help the field thrive.

She said in an interview Tuesday that she would not describe herself as an advocate of the industry, but rather as a "liberal extremist."

“The experience of cryptocurrencies over the past few years has been extremely frustrating for someone who believes that the government serves the American people, rather than hindering them when they try new things,” she added.